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Ian

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2

How can a fintech app go international?

Coinbase is thinking about expanding internationally, think about the trade-offs this sort of decision would present?

How would you structure the approach and position it to leadership?

Coinbase is thinking about expanding internationally, think about the trade-offs this sort of decision would present?

How would you structure the approach and position it to leadership?

2 answers

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Hi PK,

Very interesting question. Somewhat classic market entry :)

Clarifying questions

Where internationally?

What is coinbase's objective here?

How would they grow (organic or acquire)?

Benefits

  • Economies of scale - in IT/tech scale is everything
  • The larger the platform the more power...self-fulfilling cycle with usebase in an online marketplace
  • Reduced fixed/SG&A costs per customer/unit sold
  • Larger platform, better offering to customers
  • Move first, before other platforms (need to scale or will lose in the long-run)

Costs

  • Regulation - incredibly complicated patchwork regulation across countries
  • Scaled IT infrastructure
  • Tax laws
  • Much higher risk (hacks, etc.)

Execution

(Really dependent on clarifying questions here)

  • If we do want to do this, how will we?
  • Acquire vs grow organic changes the entire decision
  • Where do we enter (target similar countries/cultures/languages first)
  • How to handle currency exchanges
  • How will competition respond? Will this become an arms race?

Hi PK,

Very interesting question. Somewhat classic market entry :)

Clarifying questions

Where internationally?

What is coinbase's objective here?

How would they grow (organic or acquire)?

Benefits

  • Economies of scale - in IT/tech scale is everything
  • The larger the platform the more power...self-fulfilling cycle with usebase in an online marketplace
  • Reduced fixed/SG&A costs per customer/unit sold
  • Larger platform, better offering to customers
  • Move first, before other platforms (need to scale or will lose in the long-run)

Costs

  • Regulation - incredibly complicated patchwork regulation across countries
  • Scaled IT infrastructure
  • Tax laws
  • Much higher risk (hacks, etc.)

Execution

(Really dependent on clarifying questions here)

  • If we do want to do this, how will we?
  • Acquire vs grow organic changes the entire decision
  • Where do we enter (target similar countries/cultures/languages first)
  • How to handle currency exchanges
  • How will competition respond? Will this become an arms race?

(edited)

Book a coaching with Clara

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Hello!

First, I would recommend you to edit the post and draft your solution. This way it´s going to be much more enriching to you, since we will comment and give feedback after :)

Secondly, to help you with that: this is the classical market penetration case. You can find plenty of posts by tiping those key words in this very same q&a. At the end, those cases are always super similar.

Hope it helps!

Cheers,

Clara

Hello!

First, I would recommend you to edit the post and draft your solution. This way it´s going to be much more enriching to you, since we will comment and give feedback after :)

Secondly, to help you with that: this is the classical market penetration case. You can find plenty of posts by tiping those key words in this very same q&a. At the end, those cases are always super similar.

Hope it helps!

Cheers,

Clara

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